David,Richard,and Anthony are partners in a law firm under a typical partnership agreement in which each owns an equal share of the business.Richard dies suddenly of a heart attack.What will most likely become of the partnership?
A) It will immediately cease to exist and David and Anthony will have to find new jobs.
B) Richard's share of the business will automatically be split between David and Anthony.
C) David and Anthony will be able to purchase Richard's interest from his estate.
D) David and Anthony will have to quickly find a new partner to take Richard's place.
E) It will dissolve,and David and Anthony will lose personal property to pay business debts.

Question

Quizplus · Accepted Answer

In a typical partnership agreement, there is usually a provision for what happens in the event of a partner's death. Often, the surviving partners have the option to purchase the deceased partner's interest in the business from their estate. This allows the business to continue operating without interruption and ensures that the deceased partner's family receives fair compensation for their share of the business. Therefore, David and Anthony will likely be able to purchase Richard's interest from his estate and continue running the law firm as partners.

David,Richard,and Anthony Are Partners in a Law Firm Under a Typical